True, but I'm assuming that it doesn't work as long as everyone does as they please.
You just have to look at all the stuff paid by mandatory royalities like taxes or payments for public health care. As long as rich people can opt-out it will never work 100%.
I'd you dont want to pass on anything to your children, you're welcome to spend it all however you see fit. Allowing people to pass it on to whomever they like won't change your ability to do that.